Oil falls below $79 in tune with equities

NEW YORK: Oil prices fell more than 2% to below $79 a barrel on Monday on concerns that a sluggish economic recovery will keep fuel demand low.

Investors scaled back their commodities holdings following a recent rally for raw goods. Equities fell and the US dollar firmed against other currencies, after touching a 14-month low earlier on Monday. US crude for December delivery fell $1.65 to $78.85 per barrel by 22:00 IST, having earlier risen to as high as $81.58, near a one-year high of $82 a barrel reached on October 21. London Brent crude fell $1.57 to $77.35 a barrel.

A stronger dollar makes oil costly for holders of other currencies. The dollar firmed as investors moved into more safe-haven assets like US Treasury bonds, and away from commodities.